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CTmower
09-03-2008, 11:42 AM
I know what some will say but at what point is it worth going legit????
Ive been doing this PT for about 4 years now and have 15 lawns right now. Next year im adventuring out and gonna try and make it a full time gig which will include residential and commercial. I have one Condo unit where a family friend lives that wants me to bid. The only problem is you need to be licensed and insured to do the work. I have my Liability insurence but im just debating if its worth it at this point to go legit and start paying taxes and what not on the income from this part time gig.

PROCUT1
09-03-2008, 12:44 PM
Im willing to bet the majority of this board are operating the same way

CTmower
09-03-2008, 12:52 PM
I was pretty much just looking for the steps needs to make your business legit and guess i should have asked it that way....

Obv step 1 is to be fully insured, but im a little hazey on the neck steps..
Do i go to my town hall and register my business which will then make me legit?? Where do i get my federal tax id number from, etc???

A simple step by step explanation is all im looking for.......

westsweeper4
09-03-2008, 01:28 PM
So basically you come on here say your business is illegal and you want the rest of us to tell you what to do. Hmm that makes sense:hammerhead:

mattxb
09-03-2008, 01:34 PM
Go get a FEIN, search it on google. Then go to your local Business License office and ask for details on how to register your business.

Thats the easy part, running an actual business like a business is the part your gonna struggle with.

punt66
09-03-2008, 02:38 PM
OK since your in CT i can tell you what you need.

1. You actually do not a FEIN (Federal Emplyer Identification Number) # unless you have employees.
2. Register with the DRS (department of revenue services) and collect sales tax and submit return every 3 months. They will mail it to you automatically. I submit my return online, funds are electronic and instnt. easy
3. Get a home improvement lic# by sending in $160 to the state. Nothing required but business name and address. They just want your money.
4. Insurance on liability and business insurance on vehicle.
5. File your income tax return as usual except add your income you produced minus expenses. If you go as an LLC or corporation that changes everything and you cant file your taxes under your name it has to be done under the business.
5. As a Solo o

CTmower
09-03-2008, 03:35 PM
So when you say minus expenses does this include, any new tools for the job i might buy, gas for mowers and truck, mileage on truck, or anything else you can think of that deducts from your profit????

punt66
09-03-2008, 05:49 PM
So when you say minus expenses does this include, any new tools for the job i might buy, gas for mowers and truck, mileage on truck, or anything else you can think of that deducts from your profit????

deductions:


fuel (you can also get tax refund on fuel used for offroad use, mowers etc)
depreciation of equipment
clothing
supplies
materials (mulch, seed, etc)
registration
license fees
any expense related to your business you subtract from the years sales.

I would suggest hiring a book keeper to update your books every 6 months with the reciepts and sales of your business.
At the end of the year you then give those books to a tax professional to do the rest. Or do some research and figure out how to do it yourself. If you dont go to crazy with deductions its not that hard.

Use quickbooks to bill and recieve payments. It will also track sales tax, profit, expenses, bank account etc and can give you tax reports, profit reports etc.

I use a spread sheet for scheduling. Works great for me and my 63 weeklys.
I would be happy to help you if you have anymore questions. These bashers i would bet arnt legit either so ignore them.

mattxb
09-03-2008, 10:46 PM
Man CT is much more difficult than Georgia.

For us:

=FEIN is required even if solo op. = also says so on the IRS webpage
=$35 County Business License is required which requires the FEIN
=NO STATE Registration or License is required.

If you want to insure thats up to you in GA.

So easy, compared to CT.

JPsDuramax
02-01-2009, 11:05 PM
Man CT is much more difficult than Georgia.

For us:

=FEIN is required even if solo op. = also says so on the IRS webpage
=$35 County Business License is required which requires the FEIN
=NO STATE Registration or License is required.

If you want to insure thats up to you in GA.

So easy, compared to CT.

Actually the FEIN is not required in Georgia. Just your SSN or FEIN. But agreed, it is much easier in the great state of Georgia

CBlandscaping
02-01-2009, 11:43 PM
CTmower, punt66 pretty much covered it all, i just finished going through all this and it was alittle more complicated because i went the LLC route, i would suggest determining which form of ownership you are going to use first before doing anything else because that will determine the exact steps, also the CT state website has a one stop licensing center that explains what you need to do to start your business

OldRedFord
06-28-2010, 07:55 PM
Actually the FEIN is not required in Georgia. Just your SSN or FEIN. But agreed, it is much easier in the great state of Georgia


Us lawn care guys don not have to worry about sales tax stuff?

punt66
06-28-2010, 08:12 PM
Us lawn care guys don not have to worry about sales tax stuff?

what does sales tax have to do with a fein#?

OldRedFord
06-28-2010, 10:54 PM
OK since your in CT i can tell you what you need.


2. Register with the DRS (department of revenue services) and collect sales tax and submit return every 3 months. They will mail it to you automatically. I submit my return online, funds are electronic and instnt. easy


You confused me with the sales tax part. Why sales tax? Unless your selling the plants that you install?

Man CT is much more difficult than Georgia.

For us:

=FEIN is required even if solo op. = also says so on the IRS webpage
=$35 County Business License is required which requires the FEIN
=NO STATE Registration or License is required.

If you want to insure thats up to you in GA.

So easy, compared to CT.

Then he didnt mention anything about sales tax. So I wonder if anything needs to be done with sales tax if you are doing landscaping in GA.

punt66
06-29-2010, 06:41 AM
You confused me with the sales tax part. Why sales tax? Unless your selling the plants that you install?



Then he didnt mention anything about sales tax. So I wonder if anything needs to be done with sales tax if you are doing landscaping in GA.

In CT (this thread is about CT) you must charge sales tax for services and product.